June 29, 2007

Howrey abandons lockstep for associates

News here. Lockstep compensation -- pay based on seniority alone -- has almost entirely disappeared as a means of compensating partners. But it's still the formal mode of compensating associates. I say "formal" because firms can use hefty bonuses to reward associates in high-demand areas and to compensate star associates. Firms have also paid different rates for associates that have Ph.D's or other pertinent degrees. Still, for Howrey to formally and publicly abandon associate lockstep is sure to raise eyebrows and prompt discussion at other biglaw firms. A key argument for associate lockstep pay has been the desire to reduce competition and envy among associates. This will be a closely watched innovation.

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Howrey abandons lockstep for associates

News here. Lockstep compensation -- pay based on seniority alone -- has almost entirely disappeared as a means of compensating partners. But it's still the formal mode of compensating associates. I say "formal" because firms can use hefty bonuses to reward associates in high-demand areas and to compensate star associates. Firms have also paid different rates for associates that have Ph.D's or other pertinent degrees. Still, for Howrey to formally and publicly abandon associate lockstep is sure to raise eyebrows and prompt discussion at other biglaw firms. A key argument for associate lockstep pay has been the desire to reduce competition and envy among associates. This will be a closely watched innovation.